Retirement is a great time to pick up new hobbies and master new skills. And if you’re looking for a little extra income, some of these talents could come in handy. Whether you write, sew, play music or paint, we can assist you as to how best to capitalise on your craft.
Hobbies are a great way to have fun, make new friends and give your brain the regular mental exercise it needs to stay sharp.
What you might not know, however, is that many of these new skills could earn you a few extra dollars in retirement. There are a wealth of online platforms you can use to sell the things you make or offer the skills you’ve developed.
Sell the things you make
Perhaps you’ve taken up knitting, carpentry, or another hobby which involves creating something from nothing. While hand-made items make excellent gifts for your friends, there’s also a large market for these items too.
An easy way to tap into this market is to sell your wares on an online sales platform such as:
Aside from Gumtree, these marketplaces will charge fees to sell your items through their platform. In some cases, such as Madeit, these fees are structured as a subscription service similar to Netflix or Spotify. For others, like Bonanza and Etsy, you might be charged a number of flat rate and percentage-based fees depending on what you sell and how you sell it.
Be sure to check the terms and conditions – some of these services include protections to stop scammers or even reimburse sellers for unpaid goods[1]. But they may equally penalise sellers for listing the wrong type of items or trying to take a transaction off the platform to save on fees.[2]
If you’re worried about selling online or simply prefer face-to-face interactions, you might consider running a stall at a local art and craft market. It may be a good idea to insure your stall – some insurance companies even offer specialised ‘market trading insurance’ policies for regular stall holders.[3]
Note that selling food or alcohol is regulated and states have different rules. If you really want to sell food or drink, speak to a specialist adviser who can offer tailored guidance.
Offer your skills as a service
As with selling goods, one of the simplest ways to advertise your services could be online. Again, Gumtree, Etsy, Madeit, and Bonanza can be used if you want to sell custom, made-to-order items.
Another marketplace worth considering is Airtasker. This marketplace lets people in your local area post jobs they need doing and their rough budget for the work. You can then bid for that work, offering a fee you think is fair for your labour as well as a short message outlining why you’re the best person for the job. The original poster then chooses someone to complete the job. Airtasker is most suited to handy-man type jobs but other services are also in demand.
Other ways to advertise services include local community noticeboards or even asking specialty stores if they’ll let you hang up a poster.
Consider tax and social security impacts
Two critical considerations to make before cashing in on your hobbies is how it could affect your taxes and also eligibility for the Age Pension. If you’re making sales regularly or have opened your own online store, you may find yourself defined as a business rather than a hobbyist[4] under the current ATO rules and this could have consequences come the end of the financial year.
Talk to your financial adviser
Changes to your income can impact your tax or social security position and your retirement plan. That’s why it’s always worthwhile to speak with a financial adviser to avoid any surprises
[1] Etsy, ‘Purchase Protection Programme for Sellers’, Etsy, 1 August 2022, accessed 2 August 2022.
[2] Etsy, ‘Fees & Payments Policy’, Etsy, n.d., accessed 2 August 2022.
[3] Business.gov.au, ‘Set up a market stall’, Business.gov.au, 5 January 2021, accessed 2 August 2022.
[4] Business.gov.au, ‘Difference between a business and a hobby’, Business.gov.au, 24 May 2021, accessed 2 August 2022.